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Jewellery retailer Chow Tai Fook expects strong sales growth in China, Hong Kong and Macau during the next decade, and the company is moving ahead with a planned IPO in Hong Kong. The offering aims to raise up to $2.8 billion, which the company will use to add stores in its three fastest-growing markets.

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Share prices of formerly fast-growing Hong Kong retailers including beauty brand Sa Sa International Holdings and Chow Tai Fook Jewellery Group have fallen dramatically, along with the city's retail fortunes. Hong Kong's economy dipped 0.4% in the first quarter, Lunar New Year sales fell 12.5% and tourism from mainland China is expected to fall 3.2% this year, according to the Hong Kong Tourism Board.

Hong Kong-based retailer Chow Tai Fook Jewellery Group is looking farther afield for growth amid a slowdown in Chinese tourism that led to double-digit sales declines in Macau and Hong Kong in the fiscal year ended March 31. The luxury jeweller booked a 26% increase in sales in markets outside its traditional base, including South Korea, Taiwan and the US, and the company said it will focus growth on markets where Chinese tourism is on the rise.

Luxury retailer Chow Tai Fook Jewellery Group has negotiated 10% to 20% rent decreases on some Hong Kong stores as 30 more of its store leases come up for renewal this year. Hong Kong retailers have seen a sales slowdown as China's wealthy tourists travel elsewhere, and sales of jewellery, watches and clocks fell for the sixth consecutive month in March.

Chow Tai Fook Jewellery Group's term sheet indicates that the retailer is looking to offer about 1.05 billion shares in an initial public offering in Hong Kong. Chow Tai Fook is scheduled to list on Dec. 15.

Chow Tai Fook Jewellery is striving to seek the Hong Kong Stock Exchange's approval for a listing, sources said. The jewellery retailer is aiming to raise up to $4 billion through an initial public offering in Hong Kong but hasn't decided when to launch the IPO.